BMW’s global chief, Oliver Zipse, has urged the European Union to reconsider its ban on new internal combustion engine (ICE) vehicles set for 2035. He argues that the industry needs more time to reduce its dependency on Chinese battery technology, a key concern for European automakers.
Speaking at the Paris Motor Show, Zipse, a strong proponent of alternative zero-emission solutions like biofuel and hydrogen, warned that the 2035 ban could shrink the automotive industry dramatically. He pointed to rising production costs, slow innovation, and stiff competition from Chinese budget brands as significant challenges that are delaying electrification efforts across Europe.
Zipse is advocating for a revision of Europe’s electric vehicle (EV) strategy. He believes adjusting the regulations would allow European car manufacturers to focus on their strengths and avoid over-reliance on China for essential battery components.
He explained, “Modifying the 100% battery electric vehicle (BEV) target for 2035, as part of a broader CO2-reduction plan, would reduce Europe’s dependence on Chinese batteries.”
BMW is not alone in this pushback. Other major automakers like Stellantis and Volkswagen have raised similar concerns about the EU’s 2023 ruling. They fear the financial penalties tied to missing the electrification targets could severely harm their businesses, especially as demand for EVs has been lower than anticipated.
The Italian government is also pressing for changes, suggesting that either the policy be reformed or the deadline extended. The broader European car market has struggled, shrinking by about 18% since the pandemic, according to the European Automobile Manufacturers’ Association. EV sales have not fared well either, with a nearly 44% drop in August 2023 compared to the previous year.
A key factor behind these declining sales is the rising cost of EVs. Since 2020, the average price of an electric vehicle in Europe has increased by about 11%, jumping from €40,000 ($65,000) to €45,000 ($73,000), as reported by Automotive News Europe.
Complicating matters further, European regulators are preparing to impose steep tariffs of up to 35.3% on Chinese-made EVs, in addition to the existing 10% levy on imported cars. This move will likely hit automakers like BMW, Stellantis, and Volkswagen, who manufacture some of their EV models in China. Zipse has called these tariffs a potential “fatal blow” to the industry.
In sum, the automotive sector is facing significant headwinds, and leaders like Zipse are urging the EU to rethink its current approach to ensure the long-term health of the industry.
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